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Thursday, 21 May 2009

RIO up 4%

by Marcus Padley

The market is down 5. The SFE futures suggested a 2 point fall in the market this morning on the back of the 29 point fall in the Dow. Banks generally weak. The financial sector was down 2.6% in the US and was the worst performing sector. The NAB goes ex dividend 73c on June 4th.

Dow down 52. Up most of the session again – fell around 90 points in the last hour. Up 117 early in the session, down 69 at worst.

RIO up 4% in the US — Not a day goes by in the papers without the Rio Tinto - Chinalco deal being mentioned. According to the press Chinalco are now going to restructure its $US19.5bn investment deal with Rio to satisfy the federal government’s concerns.

  • APN News & Media (APN) has completed the institutional component of its accelerated non-renounceable pro-rata entitlement offer raising $83m, $4m higher than expected.
  • Envestra (ENV) upped it profit guidance for 2009 to incorporate lower borrowing costs, higher-than-expected revenue and government tax credits.
  • Fairfax Media (FXJ) is offering to buyback $200m of medium term notes that mature June 27, 2011.
  • Macquarie Airports (MAP) says the timing of recovery in traffic volumes across its international airport portfolio remains uncertain.
  • Macquarie Group (MQG) says proposed changes to taxation of employee share schemes may have the reverse impact on its ability to implement its new remuneration plan.
  • Woodside Petroleum (WPL) has entered into negotiations with Apache Corp. and Kuwait Foreign Petroleum Exploration Company to buy gas for a possible expansion of its Pluto liquefied natural gas project.
  • Adelaide Brighton (ABC) has held its AGM – expects FY net profit of between $105m-$115m and says cement demand may weaken 20% over the next 18 months.
  • ROC Oil (ROC) has held its AGM today.

Also making the news…

  • Credit Suisse ups Stockland’s target price to 305c from 298c and maintains its Neutral recommendation – expect SGP to “save face” for the loss incurred on its GPT Group stake by entering into an equity-for-asset swap with them. Rumours continue to build about a possible merger between the two.
  • No comment from Santos regarding the AFR’s claim that it’s already receiving offer for its Evans Shoal, Petrel, Tern and Frigate gas projects in the Timor Sea offshore Darwin.
  • Centamin Egypt (CNT) up over 20% after its parent company announced overnight encouraging resource definition drilling results.
  • New motor vehicle sales increased 0.9% to 70,814 units from April.
  • The Dow Futures suggest a 27 point fall on Wall Street tonight.

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